A few days ago, Lifan Technology issued an announcement that it intends to set up a joint venture with Geely Automobile Holdings Co., Ltd. (hereinafter referred to as "Geely Automobile") in the direct management area of Liangjiang New District, Chongqing, and the business scope of the target company is the design, research and development, and sales of the whole vehicle (including accessories, parts processing equipment, automotive decoration); import and export of goods, agent import and export, technology import and export; software development; technology development, technical services, technical consulting, and technology transfer.
According to the plan, the registered capital of the target company is RMB 600 million, of which Lifan Technology contributes RMB 300 million in the form of monetary funds, with a shareholding ratio of 50%, and Geely Automobile contributes RMB300 million in the form of monetary funds, with a shareholding ratio of 50%. The announcement also clarified that "upon mutual agreement between the two parties, the two sides may designate a separate entity to make capital contributions." ”
Lifan Technology completed the restructuring in early 2021, although it belongs to Geely, but the leading party is actually Geely Technology Group, not Geely Automobile, which signed the contract.
![Each investment of 300 million yuan / involving vehicle manufacturing and sales Lifan plans to establish a joint venture with Geely[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)